Exam 10: Measuring a Nations Income

A professional gambler moves from a state where gambling is illegal to a state where gambling is legal. Most of his income was, and continues to be, from gambling. His move

Suppose an economy produces only eggs and ham. In 2009, 100 dozen eggs are sold at $3 per dozen and 50 pounds of ham sold at $4 per pound. In 2010, the base year, eggs sold at $1.50 per dozen and ham sold at $5 per pound. For 2009,

In the national income accounts, depreciation is called

Nominal GDP uses constant base-year prices to place a value on the economy's production of goods and services, while real GDP uses current prices to place a value on the economy's production of goods and services.

Which of the following subcomponents of GDP can be either positive or negative?

When an American doctor opens a practice in Bermuda, his production there is part of U.S. GDP.

In the economy of Ukzten in 2010, consumption was $6000, exports were $1000, GDP was $10,000, government purchases were $2000, and imports were $600. What was Ukzten's investment in 2010?

Table 10-5 A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2009.Prices and Quantities Year Price af Mavies Quantity af Mavies Price af Popcarn Quantity df Papentn 2008 \ 10.00 400 \ 5 800 2009 11.00 500 \ 4 900 2010 \ 12.00 600 \ 5 1000 2011 \ 12.00 600 \ 900 -Refer to Table 10-5 In which year was this country's nominal GDP highest?

Table 10-3 The table below reports nominal and real GDP for the U.S. from 1929 to 1932. Year Nominal GDP Real GDP 1929 103.6 977 1930 91.2 892.8 1931 76.5 834.9 1932 58.7 725.8 -Refer to Table 10-3. What is the GDP deflator and the inflation rate for 1932?

The consumption component of GDP includes spending on

Real GDP evaluates current production using prices that are fixed at past levels and therefore shows how the economy's overall production of goods and services changes over time.

Which of the following is not an example of a nondurable good?

Quality Motors is a Japanese-owned company that produces automobiles; all of its automobiles are produced in American plants. In 2010 Quality Motors produced $30 million worth of automobiles, with $17 million in sales to Americans, $9 million in sales to Canadians, and $4 million worth of automobiles added to Quality Motors' inventory. The transactions just described contribute how much to U.S. GDP for 2010?

Table 10-5 A hypothetical country of Lahland produces only movies and popcorn. Quantities and prices of these goods for the last several years are shown below. The base year is 2009.Prices and Quantities Year Price af Mavies Quantity af Mavies Price af Popcarn Quantity df Papentn 2008 \ 10.00 400 \ 5 800 2009 11.00 500 \ 4 900 2010 \ 12.00 600 \ 5 1000 2011 \ 12.00 600 \ 900 -Refer to Table 10-5 What was this country's nominal GDP in 2009?

Social Security payments are

Table 10-4 The country of Caspir produces only cereal and milk. Quantities and prices of these goods for the last several years are shown below. The base year is 2008.Prices and Quantities Year Price af Cereal Quantity af Cereal Price af Millz Quantity df Mill 2008 \ 4.00 90 \ 1.50 150 2009 \ 4.00 100 \ 2.00 180 2010 \ 5.00 120 \ 2.50 200 2011 \ 6.00 150 \ 3.50 200 -Refer to Table 10-4. This country's inflation rate from 2009 to 2010 was

In 2009, U.S. net exports were

If the GDP deflator in 2009 was 150 and the GDP deflator in 2010 was 175, then the inflation rate in 2010 was 25%.

Sheri, a U.S. citizen, works only in Germany. The value she adds to production in Germany is included

GDP is not a perfect measure of well-being; for example,